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AAFM Exam CWM_LEVEL_2 Topic 5 Question 90 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 90
Topic #: 5
[All CWM_LEVEL_2 Questions]

Section B (2 Mark)

Ajay is considering to purchase a house which will bring rental income of Rs. 15,000/- p.m at the end of month. Ajay is looking for 12% returns and he is expecting to sell the property after 5 years for Rs. 6 lac. What price Ajay should pay for this property now?

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Suggested Answer: B

Contribute your Thoughts:

Ardella
10 hours ago
This is a tricky one. I'm not sure if I should be considering the future sale price or just focusing on the rental income. I'm going to go with D) Rs. 495,000, just to be safe.
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Talia
8 days ago
Hmm, this seems like a standard time value of money problem. I'm leaning towards C) Rs. 400,000, but I'll need to double-check my calculations.
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Flo
10 days ago
This question is all about the present value of future cash flows. I think the correct answer is A) Rs. 468,000.
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Madalyn
12 days ago
I agree with Marshall, A) Rs. 468000 makes sense because it takes into account the rental income and expected selling price.
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Casie
16 days ago
I disagree, I believe the answer is C) Rs. 400000.
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Marshall
18 days ago
I think the answer is A) Rs. 468000.
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